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tv   Fast Money Halftime Report  CNBC  June 7, 2013 12:00pm-1:01pm EDT

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economy first as we've noted earlier, he got a very awkward back drop because of the nsa story. >> we'll leave it for this program. that does it for "squawk on the street" we'll hand it over to "the halftime money report." have a nice weekend. >> thanks very much. it is noon in the east. welcome. we do have our eyes on the podium out in san jose where the president is expected to speak about the affordable care act, likely to make some type of comment about the jobs report, better than expected. that's the reason you have wall street off to a great start this day. the dow jones industrial average is up 172 points, stocks up across the board. quite a reversal that picks up on the momentum that was built midday yesterday when the stock market completely turned around. remember the dow and s&p had broken below the 50 day moving
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average. we're at the lows of the day, about 24 hours ago when we came on the air, however, stocks did turn around. it was a strong finish, better than expected jobs report today, igniting a rally. what will the stock market hold? we'll talk about all of that. we have great traders with us today. a number of top guests to take you through the market and tell you what they think your best plays are right now. what we're going to hear from the president in san jose, he's going to make his way where he will meet with the chinese president, their first meeting. here is the president, let's listen. >> it is -- i want to thank everybody who is here. there's only one problem and that is that my remarks are not sitting here. things by friday afternoon, things get a little challenged.
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i'm going to have -- going to answer a question, at the end of the remarks but i want to make sure we get the remarks out. oh, goodness. somebody is tripping. i mean, folks are sweating back there right now. good morning, everybody. this afternoon i'm going to be in southern california to meet with the president of china. but before i leave northern california, i want to take a minute to address something that's happening with the affordable care act in this state. and i wanted to meet with a group of people doing very important work on behalf of california's middle class families. these leaders, from california's governments, the california endowment and major spanish
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media outlets are putting together the affordable care act here in california and educating folks on how to sign up and shop for plans. their efforts have shown excellent results in the biggest insurance market in the country. there are two main things that americans need to know when it comes to the affordable care act and what it means for you. first of all, if you're one of the nearly 85% of americans who already have insurance, either through medicare or medicaid or your employer, you don't have to do a thing. you've just got a wide array of new benefits, better protections and stronger cost controls that you didn't have before. that will over time improve the quality of the insurance you got. benefits like free preventive care, flu shots, mammograms and contraception. you'll now get those things through your insurance where they previously were not -- didn't have to be provided.
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protections like allowing people up to the age of 26 to stay on their parents' health care plans, which already helped 6 million americans, including 6 million young latino americans. cost controls like requiring insurance companies to spend at least 80% of the money that you pay in premiums in your actual health care cost, aopposed to administrative costs or ceo pay, not overhead but that money has to be spent on you. and if they don't meet that target, they actually have to reimburse you. in california, we're already getting reports that insurers are giving rebates to consumers and small business owners to the tune of $45 million this year. already we're seeing millions of dollars of rebates sent back to consumers by insurance companies as a consequence of this law.
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all of that is happening because of the affordable care act. all of this is in place rights now already for 85% of americans who have health insurance. by the way, all of this is what the republican party has now voted 37 times to repeal at least in the house of representatives. my suggestion to them has been let's stop refighting the old battles and start working with people like the leaders on stage here today to make this law work the way it's supposed to. we're focused on moving forward and making sure that this law works for middle class families and that brings me to the second thing that people need to know about the affordable care act. if you're one of nearly 6 million californians or tens of millions of americans who don't currently have health insurance, you'll soon be able to buy quality affordable care just like everybody else. here's how. states like california are
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setting up new online marketplaces beginning on october 1st of this year, you with comparison shop an array of private health insurance plans side by side, just like you were going online to compare cars or airline tickets. that means insurance companies will have to compete with each other and that means new choices. right now most states don't have a lot of competition and nearly every state, more than half of all consumers are covered by only two insurers. there's no incentive to provide you a lot of choices or to keep costs down. the affordable care act changes that. beginning next year, once these marketplaces are open, most states will offer new private insurance choices that don't exist today. based on early reports about nine in ten americans expect to enroll in the marketplaces, live
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in states where they'll be able to choose between five or more different insurers. for example, here in california, 33 insurers applied to join the marketplace, california selected 13 based on access and quality and affordability, four of which are brand-new to your individual market. so what's happening is through the affordable care act, we're creating marketplaces with more competition, more choice, and so the question is what happens to cost. now, a lot of the opponents of the affordable care act, they had all kinds of skies falling and gloom and doom predictions that not only would the law fail but we would see costs skyrocket for everybody. it turns out we're actually seeing that in the states that have committed themselves to implementing this law correctly, we're seeing good news. competition and choice are pushing down the costs in the
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individual market, just like the law was designed to do. the 13 insurance companies that were chosen by california have unveiled premiums that were lower than anybody expected. those who can't afford to buy private insurance will get help reducing their out-of-pocket premiums even further with the largest health care tax cut for working families and small businesses in our history. so about 2.6 million californians, nearly half of whom are latinos will qualify for tax credits that willower their premiums a significant amount. none of this is a surprise. this is the way the law was designed to work. since everybody has been saying how it's not going to happen, i think it's important for us to recognize and acknowledge that this is working the way it's supposed to. we've seen similar good news by the way not just here in california but in oregon, and washington. in states that are working hard
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to implement this law properly, we're seeing it work for people, for middle class families, for consumers. that's not to say that everything is going to go perfectly right away. when you're implementing a program this large, there will be in glitches and hiccups. no matter what, everybody single consumer will be covered by the new benefits and protections under this law permanently. so the bottom line is, you can listen to a bunch of political talk out there, negative ads and fear mongering geared towards the next election or look at what's happening in states like california right now. the fact of the matter is, through these exchanges, not only are 85% of people who have health insurance receiving rebates and being able to keep the kids on the health insurance until they are 26 and getting free preventive care, if you don't have health insurance and trying to get it through the
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individual market and it's too expensive or it's too restricted, you now have marketplaces where they are going to offer you a better deal because of choice and competition. and if even at the lower rates, and better insurance that you're getting through these marketplaces you still can't afford it, you're going to be getting tax cuts and tax credits through the affordable care act that will help you afford it. that's how we'll make sure that millions of people who don't have health insurance or getting a bad deal on health insurance will finally get it. but, here's my final point, to take advantage of these marketplaces, folks are going to need to sign up. so you can find out how to sign up at health care.gov or here in california, you can sign up at coveredca.com.
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coveredca.com. because quality care is not something that should be a privilege, it should be a right and the greatest country on earth, we've got to make sure every single person that needs health care can get it. we've got to make sure we do it in the most efficient way possible. one last point to make on this because there are a lot of people who currently get health insurance through employers, 85% who are already out there, and they may be saying, well, if is this law is so great, why is it my premium still went up? part of what's happening across the country is that some cases, for example, employers may be shifting more costs through higher premiums or higher deductibles or higher co-pays and so there may still be folks out there feeling increased cost, not because of the o fordable care act but because
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they are being passed to workers or insurance companies, in some cases even with the laws in place, they are still jacking up prices unnecessarily. this doesn't solve the whole problem but it moves us in the right direction. it's also the reason why we have to keep on implementing changes in how our health care system works to continually drive better efficiency, higher quality, lower costs. we're starting to see that, health care cost inflation has gone up at the lowest rate over the last three years that we've seen in many, many years. so we're making progress in actually reducing overall health care costs while improving quality but we're going to have to continue to push on that front as well. that's also part of what we're doing in the affordable care act. the main message i want for californians and people across the country, starting on october 1st, if you're in the individual market, you can get a better deal. if you're a small business that's providing health insurance to your employees, you can get a better deal through the exchanges.
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you have to sign up, healthcare.gov or coveredca.com. thank you very much. i'm going to take one question and then remember, people are going to have opportunities to answer questions when i'm with the chinese president today. i'm going -- >> mr. president, could you please react to reports for secret government surveillance of phone and internet and assure americans that the government doesn't have some massive secret database of all of the person online information and activities? >> when i came into this office, i made two commitments more important than anything, to keep the american people safe and uphold the constitution and that includes what i consider to be a
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constitutional right to privacy. and an observance of civil liberties. now, the programs that have been discussed shall are secret in the sense they are classified but they are not secret in the sense when it comes to telephone calls every member of congress has been briefed on the program. with respect to all of the programs, relevant intelligence committees are fully briefed on these programs. these are programs that have been authorized by broad bipartisan majority repeatedly since 2006. i think at the outset it's important to understand that your duly elected representatives have been consistently informed on exactly
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what we're doing. let me take the two issues separately. when when it comes to telephone calls, nobody is listening to your telephone calls. that's not what this program is about. as was indicated, what the intelligence community is doing is looking at phone numbers and directions of calls, not looking at people's names and looking at content. but by sifting through this so-called metadata, they may identify potential leads with respect to folks who might engage in terrorism. if these folks -- if the intelligence community wants to
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listen to a phone call, they've got to go back to a federal judge, just like they would in a criminal investigation. so i want to be very clear, some of the hype that we've been hearing over the last day or so, nobody is listening to the content of people's phone calls. this program by the way, is fully overseen not just by congress, but by the court especially put together to evaluate classified programs to make sure that the executive branch or government generally is not abusing them and that it's been carried out consistent with the constitution and rule of law. and so not only does that court authorize the initial gathering of data but i want to repeat, if anybody in government wanted to
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go further than the top line data and wanted to, for example, listen to jackie's phone call, they would have to go back to a federal judge and indicate why in fact they were doing further probing. with respect to internet and e-mails, this does not apply to u.s. citizens and does not apply to people living in the united states again, in this instance, not only is congress fully apprised of it but what is also true, the court has to authorize it. so in summary, what you've got is two programs that were originally authorized by congress, have been repeatedly authorized by congress, bipartisan majorities have
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approved on them, congress is continually briefed on how these are conducted. there are a whole range of safeguards involved and federal judges are overseeing the entire program throughout. we're also setting up -- we've also set up an audit process when i came into office to make sure that we're after the fact making absolutely certain that all of the safeguards are being properly observed. having said all that, you'll remember when i made the speech a couple of weeks ago about the need to shift out of a perpetual war mindset, i specifically said one of things we'll have to discuss and debate is how were we striking this balance between the need to keep the american people safe and our concerns
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about privacy? because there are some tradeoffs involved. i welcome this debate. and i think it's healthy for our democracy. i think it's a sign of maturity, five years ago, six years ago, we may not have been having this debate. it's interesting there are folks on the left and folks on the right who are now worried about it, who weren't very worried about it when it was a republican president. i think that's good. that we're having this discussion. but i think it's important for everybody to understand and the american people understand, that there's some tradeoffs involved. you know, i came in with a healthy skepticism about these programs and my team evaluated and we scrubbed them thoroughly
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and expanded the oversight and increased the safeguards. but my assessment and my team's assessment was that they help us prevent terrorist attacks. and the modest encroachments on privacy that are involved in getting phone numbers or duration without a name attached and not looking at content, that on net it was worth us doing. some other folks may have a different assessment of that. but i think it's important to recognize that you can't have 100% security and also have 100%
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privacy and zero inconvenience. we're going to have to make some choices as a society and -- i can say that in evaluating the programs, they make a difference in our -- to anticipate and prevent possible terrorist activity. and the fact that they are under very strict supervision by all three branches of government and they do not involve listening to people's phone calls in reading the e-mails of u.s. citizens and residents and absent further action by a federal court, that is entirely consistent with what we do for example, in a criminal investigation, i think on
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balance we have established a process and procedure that the american people should feel comfortable about, but again, this -- these programs are subject to congressional oversight and congressional reauthorization and congressional debate. and if there are members of congress that feel differently, they should speak up and we're happy to have that debate. okay? all right, we'll have a chance to talk further during the course of the next couple of days. thank you, guys. >> all right, we've been listening to the president make those remarks in california. >> i don't welcome leaks because there's a reason why these programs are classified. i think that there's a suggestion that somehow any
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classified program is quote/unquote secret program, which means it's somehow suspicious, but the fact of the matter is, in our modern history, the whole range of programs that have been classified because when it comes to, for example, fighting terror, our goal is to stop folks from doing us harm and if every step that we're taking try to prevent a terrorist act is on the front page of the newspapers or on television, presumably the people who are trying to do us harm are going to be able to get around our preventive measures. that's why these things are classified. but, that's also why we set up congressional oversight. these are the folks who you all vote for as your representatives in congress and they are being
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fully briefed on these programs. and if in fact there was -- there were abuses taking place presumably, those members of congress could raise those issues very aggressively. they are empowered to do so. we also have federal judges that we put in place who are not subject to political pressure. they've got lifetime tenure as federal judges and they are empowered to look over our shoulder at the executive branch to make sure that these programs aren't being abused. so we have a system in which some information is classified and we have a system of checks and balances to make sure it's not abused. and if in fact this information
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ends up just being dumped out willy nilly, without regard to risks to the program, risks to the people involved, in some cases on other leaks, risks to personnel and very dangerous situations, then it's very hard for us to be as effective in protecting the american people. that's not to suggest that you just say, trust me, we're doing the right thing, we know who the bad guys are. the reason that's not how it works is because we got congressional oversight and judicial oversight. if people can't trust not only the executive branch but also don't trust congress and don't trust federal judges to make sure that we're abiding by the constitution, due process and rule of law, then we're going to
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have some problems here. but my observation is that the people who were involved in america's national security, they take this work very seriously. they cherish our constitution. the last thing they would be doing is taking programs like this to listen to somebody's phone calls and by the way, with respect to my concerns about privacy issues, i will leave this office at some point, some time in the next three and a half years. and after that, i will be a private citizen. and i suspect that you know, on a list of people who might be targeted, you know, so that somebody could read their e-mails or listen to their phone calls, i would probably be pretty high on their list. it's not as if i don't have a
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personal interest in making sure my privacy is protected. but, i know that the people who are involved in these programs, they operate like professionals. and these things are narrowly described and you can complain about big brother and how this is a potential program run amuck. but when you actually look at the details, then i think we've struck the right balance. all right. thank you very much. that's it. thank you. >> it does appear now that the president is finished making those remarks. first on the affordable care act and then clearly having to address the escalating controversy over the nsa story and that up until now that secret program where that agency had been collecting millions of phone calls and e-mails and other records.
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john harwood is in rancho mirage where the president will stop next and meet with the chinese president. john, it clearly seems both by the president's actions and walking from the podium and back to clearly make sure his point was understood, that he's trying to lead the narrative now after not addressing this issue at all publicly. >> reporter: scott as firestorms go this is a pretty big one. they felt they needed to address it. the president said he acknowledged there were tradeoffs and encoachments to privacy, your phone calls aren't being listened to and americans haven't having e-mails looked at unless there's a specific court order that raises suspicion about an visiindividual trying assure people he's trying to put in terms -- these put us safe and you could have a theer receipt cal debate about
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privacy, but it's working. he tried to pull a thick blanket of bipartisan cover over himself by saying it spans two administrations, one republican, one democrat, that every member of congress has been briefed on this and congress authorized the program, trying to say in effect, this is not just me and how i strike the balance, it's how our government has struck the balance. he concluded at the end, said if people don't trust the federal courts and don't trust congress and administration, we'll have problems and he's counting on the fact that he can get past that. >> the issue clearly, john, threatens to overshadow the real substance of this day and that's why you're in rancho mirage where he begins the two-day summit with the chinese president. >> exactly. we've been talking about this all morning. it is not so easy sean little bit awkward or a lot awkward for a president to sit down with a chinese leader and try to brow beat him about creepy chinese
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espionage that's hurting u.s. business and military when the news headlines are filled about reports of creepy american espionage and intelligence. he was trying to defuse that and push back and say, what we're doing is reasonable. the two things are not entirely analogous with the chin he's, we're talking about theft that cost americans hundreds of billions of dollars a year. the president tried to defuse that a little bit heading into the meeting this afternoon. we'll see if he can make some president with the chinese president. >> john harwood, where the president heads next. let's check the markets before we go to break. dow jones industrial average still holding on to sizable gains, 182 points and counting, we're back just after this. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business?
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helps him deposit his checks. jay also like it when mother nature helps him wash his car. mother nature's cool like that. citibank mobile check deposit. easier banking. standard at citibank. welcome back, we're live watching a stock market today that's having a great friday, up 177 points, a big sigh of relief, guys, as we watch the jobs report better than expected. the turbulence and volatility of
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late, didn't know what to expect but this is a sigh of relief. >> it sure is. we're down 20% in volatility terms, which peaked up over 1850. now we are at 1530. exactly. we said yesterday if we can come in 170,000 jobs, came out 175, that would be a good thing, judge. what we didn't need was some sort of disconnect that caused employers to pull back so sufficiently -- >> you didn't want a number that was going to make people believe that the economy was completely going into the can. >> right, instead of the fed driven liquidity, we would go to an economic focus that was extremely negative. now we get to talk about qe and the rest. but i don't think that's on the table for quite a while as far as actually pulling back. >> you get an s&p pullback and
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what one told me was healthy for the market and forced people to rethink the way they were going to play the markets as you watched rates rise and stocks fall, the talk of the tape for maybe some of the taper starts to work its way into the market already and that's a healthy thing. is the correction that started, is it over? are we ready to take the next leg higher now? >> i don't think we're going to have a major decline, i'm looking for 2 to 3% either way, depending on economic data. what's interesting to me is that the market action yesterday, obviously there are a number of traders and invisters were afraid of a move today and they turned out to be smart ones. the market is still rational. we don't see the ad line running away. number two, it's being selective, commodity stocks, down today, steel stocks down. it's a rational market,
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industrials leading as they should. we're setting up for a goldilocks recovery -- >> i'm glad you used the word, rational, simon, because while the market may be acting rationally and the movement we've seen over the past couple of weeks, adjustments have been made, investors seem to react ir race rationally. we had a 3.5, to 4% correction, the makeup of the rally seems to change a bit. what do you make of -- where do we go from here? how do you want to play it? as far as consistency, you continue to buy the pullbacks and sell the bumps where you're talking about the consolidation of this and it has been healthy for the market. i think which way do you want to do? do you want to be? the staples? i think it's a relative trade here and i think the cyclecals
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will outtrade -- >> are you ready to money back in? everybody said buy the dips, buy the dips. you could tell people were afraid. what do you do now? >> you have to keep in mind, the fact when you look at the volatility index, it backed off 20% from where it was yesterday on the high end at 1850. now you're closer to 1550 and still above the 200 moving average. this will be day six we close above the 200 day. likely we'll close about that which is right around the 15 level. that's reason something i've been doing, rotating from stock positions into option positions and trying to have, if there's upside, i want to have the upside. if there's more downside in the stock market, i think at least this way, we have reduced my risk in exposure in the market. >> steve, you've heard the traders weigh in. i think it's clear at this point that based on the reaction we
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saw and the stock market yesterday, when yields fell and stocks were able to come back, when yields were down and when certain areas of the stock market were humming, home builders and things directly related to the housing market. this market is all about rates right now, isn't it? >> what i want to say, the most interesting thing about the report this morning had nothing to do with the reporting. it's a blue moon day when i can't find something interesting in the jobs report. i thought the market reaction was the most interesting. what i saw was i saw stocks go up and bond yields go up. what's really interesting, if good news is good news for the market, that's what would see. you would see stocks go up because it sees better top lying growth along with better bottom lying growth and more nominal growth in the economy and bond yields go up in sympathy with that idea that there's better growth out there, higher nominal growth rate which suggests a higher 10-year bond rate.
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that's sort of a goldilocks scenario, the other interesting scenario that i'm kicking myself about, the idea that you could have decent job growth, 175, 200,000 along with a rising unemployment rate, and that's something only one month i'm a little nervous about saying there's a trade here but the concept has been, as the job market improved, people will come back in, not necessarily find jobs and you would have this tandem of 200200,175 job r. >> in the interest of rates, rates going up at a slow pace is not so bad for the stock market on your point in that it helps people prepare for what life with a taper may look like. it's the velocity of rates going up that spooked folks in the last few weeks, don't you think?
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that's that's the key issue? >> i think that's right. and the other point i've made, it's the idea of rates going up in a way not connected to better economic growth. i think the market is fine if rates go up for that. but if rates are going up only because it sees the fed reducing its purchases, that's a scary scenario to me. the other thing we dealt with in the last year, rates going up because of fear the u.s. may not finance its debt. that turned out to be a straw man, that never existed. but the main issue is, if you're going to see rates going up, accompanied by better economic growth, it feels to me that's something that the stock market can handle. >> absolutely. as i said in speaking to hedge fund guys, all healthy stuff is the way it was portrayed to me, the way they were thinking about that very context of what's happening in the markets. >> i think that's right. i hear the music playing, does that mean we're supposed to be quiet now? >> it does. >> give my regards and good weekend to all of my trader
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friends down there. >> i will indeed. >> have a good weekend. coming up on the heels of the job report, the man today said today was the most crucial day for the markets after the break. with fidelity's options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. [ male announcer ] this is george.
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so i'm doing fine... but she's still going to give me a heart attack. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare. has a lot going on in her life. wife, mother, marathoner. but one day it's just gonna be james and her. so as their financial advisor, i'm helping them look at their complete financial picture -- even the money they've invested elsewhere -- to create a plan that can help weather all kinds of markets. because that's how they're getting ready, for all the things they want to do. [ female announcer ] when people talk, great things can happen. so start a conversation with an advisor who's fully invested in you. wells fargo advisors. together we'll go far. welcome back, we're watching tivo which is tanking, they will
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receive cash up front from cisco and time warner, settling a patents case. they expected over $1.3 billion, the lower amount reduces their price target from 13 too 16. >> do you have a thought on tivo? >> they were buying down to the 11 strike, very aggressively, obviously they thought there was more downside to come, more than a 17% one day move. >> let's bring in paul richards, down here as we watch the stock market take this move higher today, 161 points where we currently sit. paul runs fx distribution at ubs. you have been saying that today was the day. we knew it was an important day but you've been focused for weeks on this day. what do you say now? >> i think it was a very good number and possibly just too good. 24 hours ago we were really
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worried about this number. you can see what was happening in the currency market. 175,000. i think it might have been -- the reason i say that is that this market -- somebody said on the floor it was goldilocks. in seven day's time we'll be discussing goldilocks, is the market presently pricing the fed meeting on which tapering will be on the agenda. and then they come out and tell you what they think about tapering, it will make a bigger number, jum the 5th. come july 31 the fed could taper. i don't think this floor or market is thinking that right now. >> 15,000 jobs in reality doesn't make that much of a difference, does it? you wanted the number to come in either where it came in today or certainly close to it rather than a fall out of bed number. that could have been greater ramifications and you would be seeing an exact opposite, we would have been down 200. >> but the thing is, let's
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consider what the fed has been telling us. you look at the speakers and they are talking about tapering. what were they looking for? jobs growth. in addition to the other good economic data that's been coming out and been consistency sound, housing, et cetera. you've got to start pricing the fed and talking about this more seriously and signaling it to the market and potentially and very carefully tapering maybe in the summer. >> to your point, maybe the bond market has been starting to price in the tapering. just as i said with steve and these guys, the speed of which it did over the last couple of weeks spooked in people. if you get the gradual move in rates, don't you think rates over 2% are starting to factor in what a taper could look like? >> definitely. ten years, at 2.4, that's solid. 2.25 scared the market. in two year's time if they start talking about tapering as a group with the chairman speaking about it, that would be a 2.30
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move and then the market won't like that. >> paul, a quick question about the 175,000 jobs or so. that's not anything that will get us to 6.5% over the next decade. >> no. >> in other words, we need numbers that are a lot more north of 200, north of 250 even to get us to those numbers. when you say starting to taper, which allen greenspan talked about on the air this morning, the sooner we do that the better quite frankly, i would tend to agree as long as the markets got enough strength in the old legs as it starts to stand up. do you think that they'll actually start moving or just talk more about it and not actually move? you mentioned july. i don't think they'll actually start moving until well into 2014, but you think it could happen before that? >> my date was the september meeting, in from q4. i think if we see strengths such as 180,000 in a month's time, i think the markets are start to
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moving and we'll know -- they have to be very careful. bernanke will go very, very slow on this thing. we'll go from eight cylinders down to seven. the car will still run beautifully but it's not everything the market wants. >> before we let you go, paul, just address the relationship dollar/yen, how we should be thinking about that into next week? it was critically important this week. >> it certainly was. it's a factor of risk, scott. we also saw the government pension fund come out and say they are reallocating from bonds and equities, that's good. june the 11th, we have the meeting, he need to step out of the book and start to speak carefully. a master at making you feel better. i think he needs to look at that next tuesday. >> thanks for coming down here and bearing with us as we listen to the president at the top of
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the show. shares of apple are down 20%, will the annual developer's conference on monday be the cast lift the stocks are looking for? ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars.
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♪ [ roars ] ♪ [ roars ] ♪ [ roars ] ♪ [ male announcer ] universal studios summer of survival. ♪ helps him deposit his checks. jay also like it when mother nature helps him wash his car. mother nature's cool like that. citibank mobile check deposit. easier banking. standard at citibank. >> set to report same store sales on monday. what's the trade ahead of that big report? let's debate it now. make your case. >> i think on the tompson has done an absolutely outstanding
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job and some of what he is doing is innovative. he is talking about expanding how much the breakfast menu is going to be. i think these are innovative from the standpoint of how can i make this a bigger company than what they already are. i'm not necessarily justcdonald china. i think the stock is not only right here at 98, i think it goes through 100. >> this is a trade on the stock. we thought about same store sales coming out on monday. they have a lot of head winds against them. it has slowed down also in europe with the austerity plan going down there. the competition with wendy's has
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heated up there. you talk about the product line-up on there, it has been dreadful. it is iconic for being one of the most unhealthy restaurants out there. dunkin -- >> have you ever had an egg mcmuffeicmuffin. >> i have not. they keep saying it's a healthy place. >> they came out with an egg white mcmuffin. you need to go to mcdonald's. >> this is tough for me. i dislike both of these guys intensely. with that aside, i think mcdonald's is a do-nothing stock. it is much more competitive in the u.s. which is still half of their income. they are not getting enough people in during the day. >> it is barely underperforming in the market.
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>> comps have been down. >> yet the company does it to trade well. >> coming up we are focusing on apple ahead of the big developer's progress. yahoo! is on deck and final trade is up next. before reminding ourselves that some bonds are more valuable than others... and before weighing the ups and downs in your life over the ups and downs in the market...
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delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ >> one important. >> the nasdaq is ripping and apple is negative. >> yeah. >> the stock has really just been me & &erring on its on. i think it is con ve lessing after the fever broke. to me it's interesting that it has not run up into the developer's conference, which
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has done in weeks prior to the prior year. maybe it's a net positive because it's a more likelihood to be an upside to a downside. >> maybe lowered expectations are just what the doctor ordered for apple. i don't think you can see it based on where you're sitting. if we can throw up an intraday chart, the stock just spiked. i don't know if this is -- >> a surge? >> an erroneous trade? >> it's not just one trade. it worked its way back into positive territory and then it moved up three dollars now. so it is a pretty interesting turn-around. >> it's unusual none the less. >> i talked about how low expectations are.
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it could be like the enemployment number. why not take a gamble on it. >> mike? >> once you hear somebody tease a segment coming up about how apple might move. >> what needs to happen out in san francisco for this stock to get a jump start? they need to pull a rabbit out of a hat? >> i think it's just a little bit of clarity of what the next thing might be. what kinds of things will drive the next phase of whatever product development is going to be there. you are getting nothing else give me a runway of what we're looking at product wise. >> i'm going to let you go. we will be live out at the worldwide developer's conference. we will do our show from there from san francisco. there it is right there. we will see you at noon on
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monday. i'm sure power lunch, we will continue to follow that story. pete? >> i like the housing stocks. i'm going with home depot. >> responses. >> jah. >> american airlines. >> all right. have a great weekend. power lunch picks up the fall right now. >> halftime is over. power lunch and the second half of the trading day starts right now. >> scott, thanks very much. i guess they like the jobs report. the bulls seem to be back big time. be quiet now. they are listening. they are watching. they are reading. the government's secret way of mining information. it's not a secret any more if it ever really was. what does it mean to companies that have been helping and what does it mean for the ways that we communicate? and a serious storm is nutritioning its way up the east coast.

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